New Apple store highlights "geniuses," services

By Franklin Paul and Scott Hillis

NEW YORK/SAN FRANCISCO (Reuters) - At Apple Inc's APPL.O new store in Manhattan, the smiling "geniuses" and "concierges" standing at attention are as important as the iPods and Mac computers on display.

The store, Apple's second-biggest in the United States, has an entire floor dedicated to customer service and technical help, a key focus for the company and one that has helped drive sales growth.

"What the Apple stores do is give customers a place to come and feel and touch the products, and more importantly, talk to someone who knows the products intimately," said Tim Bajarin, president of Creative Strategies, a consultancy.

"That just does not exist well in the PC side. You can't get a similar experience at Best Buy (BBY.N: Quote, Profile, Research, Stock Buzz) or Circuit City (CC.N: Quote, Profile, Research, Stock Buzz)," Bajarin said.

Apple met widespread skepticism when it opened its first stores in 2001, as many analysts scratched their heads at the company's entry into an unfamiliar business.

But the strategy has paid off in a big way. Apple stores pulled in $1.25 billion in revenue in the company's last fiscal quarter, a 42 percent jump from a year earlier and accounting for a fifth of total revenue.

Apple shares have more than doubled over the past year and closed up 2.4 percent on Thursday at $189.95.

There are more than 200 stores in five countries and Apple said in October it planned to open about 40 outlets in the next year, including its first in China.